Originally Posted by
Snoopy
I find it amusing that some think they can apply a 'single share price trigger' figure as when they should buy and sell any particular share they choose, such as:
"entry point is when the 50 day moving average crosses above the 200 day moving average and the share price is above the 50 day MA"
Not all shares behave in the same way.
Contact is a utility like share which bounces around in a relatively narrow price band. The best strategy is to buy near the bottom of the band and sell near the top (if you are a trader). If you wait for the uptrend to become established you will miss the low risk gains. Such a rule also ignores dividends which have traditionally provided some 80% of the gains on this share. Try using a trading rule that leaves out 80% of the relevant data points and see how you get on.
IMO trading Contact is a terrible idea because it is not volatile enough, while the juicy divdends reward buy and hold investors. Blindly following the trading rule for CEN as defined will likely lead to terrible results, far worse than buy and hold unless you are a broker who will be happy to pocket your commissions on the way.
SNOOPY
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